Impact of LEZ on the used car market
At a European level, the reduction of air pollution is one of the main challenges as 96% of the urban population is exposed to fine particulate matter at a higher level that recommended by the World Health Organization (2022).
Countries are working towards a common goal following policies set by the European Union to improve air quality, particularly in bigger cities. One of them is the implementation of low emission zones.
What are Low Emission Zones?
Low Emission Zones or LEZ are special areas where only some vehicles are allowed and specifically lower emissions. Electrified vehicles and other mobilities like bicycles or scooters are promoted in exchange for ICE vehicles. Vehicles considered too polluting are either asked to pay a fee to enter the zone or are simply banned from the area.
The first zone was created in Stockholm in 1996, today more 300 LEZ are implemented in Europe.
These zones allow major cities to reduce fine particulate matter in areas where a lot of the population is exposed.
Laws and regulations concern personal vehicles as well as taxis, city buses and trucks. Some LEZs are partial, which means that its regulations exclude only a certain type of vehicles like logistics transports for example.
Specificities within countries
Countries within Europe follow EU’s guidelines about air pollution and its reduction but they each make their choices in terms of application.
London has implemented a 24/7 LEZ since 2008 which concerns today more of Greater London. The city then upgraded certain areas to ultra-low and even zero emission zones. Some PHEV vehicles have a special mode that allows you to drive in full electric for a certain distance which can be useful for these ultra-low zones.
The Greater Paris already announced that its LEZ will turn into a zero-emission zone by 2030. In the meantime, it is already under LEZ following the “Crit’Air” sticker ranking. This zone is in action from 8AM to 8PM excluding the weekend.
In Spain, in cities with more than 50 000 inhabitants, it is mandatory to implement a LEZ which means 149 cities will or already have banned the most polluting vehicles. Some cities also implemented limited traffic zones in order to reduce the overall pollution.
What does it imply for the used car market?
As LEZ are forbidding the entrance of certain ICE vehicles in cities, the demand for less polluting vehicles such as electrified cars increase. In these areas, the price of diesel vehicles decreased as the demand is lesser. This effect can also be seen on a smaller level in areas where a low emission zone is planned.
Used car professionals around these areas are already adapting to the changes in demand by diversifying their offer. Improve your knowledge about electrified vehicles and make the shift easily.
Conclusion
In 2025, it is expected to reach 507 low emission zones in Europe due to an increase in national laws. For used car professionals, it means that the need to adapt is important due to pressure from guidelines and laws. Low emission zones are an efficient solution to curb air pollution in cities and reduce fine particulate matter emissions.
Source : The evolution of Low Emission Zones (LEZ) in Europe: Impacts and perspectives | COM (arval.com)
